The inclusive corporate donation: Easier than ever

Team Besprechung
Team Besprechung

(for the German version see here)

In recent years, we have observed a number of interesting developments:

  • Corporate donations to charitable organizations are becoming more and more commonplace. Especially at the end of the year, donations are increasingly replacing Christmas gifts to customers and suppliers. Instead, companies send out Christmas cards to their partners explaining that instead of a gift, they have donated an appropriate amount to one or more charitable organizations.    
  • Employees not only appreciate company donations to charity, they increasingly take them for granted.
  • Employees want to be involved in the company’s giving decisions.  

The last point in particular can be a challenge for companies. People’s giving preferences vary widely, often based on personal experiences with individual organizations or issues. As a company, a decision to donate to one or a few charitable organizations often means that many other well-intentioned suggestions from colleagues cannot be considered. This is true even if the decision is to be made by only a relatively small group, such as the founding partners or senior management. In the absence of clear selection criteria, it is often difficult to provide a rationale for the choices made that is understandable to all concerned.

The consequences are often:

  • Time-consuming discussions,
  • Unclear decision-making processes,
  • Frustration among colleagues whose suggestions have not been taken into account.

All of this in an area that should be a source of pride and joy for all involved – management and staff alike – and increase loyalty to the company!

The good news is that this doesn’t have to be the case. Because now you can use the inclusive corporate giving approach, based on our giving funds.

Donation funds save time and nerves

On Effektiv Spenden, Germany’s most effective giving platform, we have bundled our current giving recommendations into four thematic funds: our Global Health and Development Fund, our Climate Change Fund, our Animal Welfare Fund, and our Global Catastrophic Risks Fund. When you donate to one or more of these funds, you are automatically supporting the organizations that are both among the most demonstrably effective in their field and have the greatest current need for funding. We comprehensively evaluate all supported organizations with the help of our expert partners who have spent many years conducting extensive and detailed research into most effective charities. To ensure that any donor, whether individual or corporate, can easily understand the projects we recommend and support, we transparently explain our funding allocations on our website.

And, most importantly for the corporate context, companies no longer have to be decide for or against individual projects. Instead, depending on the company’s tradition, all relevant stakeholders, such as management, employees or others, can vote on which issues are particularly close to their hearts. Is it the current climate crisis? Is it poverty, education and health, particularly in the global south? Is it animal welfare? Or is it future risks, such as new pandemics or the dangers of unregulated artificial intelligence? (If the corporate donation is also intended to support the company’s net-zero strategy, also see our blog post on corporate climate action.)

Once stakeholders have been involved, the company can take all their preferences into account. The earmarked donation volume is then allocated to the thematic cause areas based on the preferences identified. We then work with our partners and experts to determine which organizations can have the greatest impact within each cause area, and report on the selection, use and impact of the funds.

This process benefits everyone involved: The company can efficiently involve all desired stakeholders in the decision-making process. The voices of all stakeholders are taken into account. Reporting is transparent and consistent across all cause areas, without tying up company resources. 

Last but not least: Corporate donations go to organizations that are proven to be many times more effective in their field than the average non-profit organization – with no deductions. We do not charge any fees, nor do we receive anything in return from the organizations we recommend. Instead, we are funded entirely by individual donations from people and organizations who want to grow effective giving by supporting us.

If you would like to find out more about our corporate giving offer, or if you would like support in introducing simple, inclusive and effective corporate giving to your organization, please contact us and we can arrange a video call at short notice.

Über den Autoren

Avatar von Stefan Shaw

Founder & Head of Philanthropy

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